Elton Fernandes

Efficient use of airport capacity

The capacity of 35 Brazilian domestic airports was analyzed with a view to determining which of them were efficient in terms of the number of passengers processed. Data Envelopment Analysis (DEA) methodology was employed to construct the efficient frontier for the sample, to reflect which of the airports used airport resources efficiently and which offered surplus in these same facilities, and in what proportion. On the basis of passenger demand forecasts, it was possible to determine, for each airport, the periods when capacity expansions would become necessary to maintain services at standards currently perceived by passengers.

Managerial efficiency of Brazilian airports

The efficiency of 35 Brazilian domestic airports was discussed with a view to identifying avenues to improvement in two dimensions. The first of these is improved management, which shows in the airports ability to generate financial returns. The second is the physical dimension, which shows the level of utilization of airport infrastructure. The data envelopment analysis methodology was used to measure distance from the airport efficient frontier and to enable avenues to managerial improvement to be identified.

The causal relationship between GDP and domestic air passenger traffic in Brazil

Abstract This paper examines the causal relationship between economic growth and domestic air passenger transport in Brazil, using Grangers causality test. Total domestic passenger-kilometres are used as a proxy for air transport demand and gross domestic product as a proxy for economic growth. The test spans the period from 1966 to 2006. The results lead to the acceptance of the hypothesis that there is a unidirectional Granger causal relationship from economic growth to domestic air transport demand in Brazil, having a high elasticity in the short term.

AIRLINE CAPITAL STRUCTURE AND RETURNS

This article addresses performance, financial strategy and efficiency in the worldwide civil aviation industry. The sectors basic regulation and the need for large investment are characteristics of air transport industry. These resources are financed by the companys own capital and that of third parties. Bearing in mind the sectors high level of indebtedness, we have sought to identify companies which have adopted different financial strategies with consistently satisfactory financial performance. In these companies shareholders’ capital represents at least 40% of all funds employed.

Knowledge management for improving business processes: an analysis of the transport management process for indivisible exceptional cargo

This paper presents an organizational analysis methodology aimed at knowledge capitalization with a view to improving business processes. Based on a real problem in a large electric sector firm, this methodology is applied to managing the transport of indivisible exceptional cargo (IEC). In the firm in question, intellectual capital is a critical asset for service performance and is fundamental for achieving business excellence. Applied to the firms transport management process, the approach proved appropriate to IEC transport-related organizational goals. A review highlights definitions and structures for improving business processes proposed previously in the literature. The results of applying the methodology are discussed at the end of the paper.

Indebtedness and bankruptcy costs in the airline industry

Indebtedness and bankruptcy cost are fundamental concerns in corporate capital structure decision-making processes. This paper discusses which economic forces are most important to capital structure choices in the airline industry. The study uses multiple regression analysis models with selected capital structure variables to test trade-off theory postulates as they relate to the airline industry. The results do not appear to indicate any strong relations among the variables predicted by this theory of capital structure. Airlines are a capital-intensive, public-utility service industry demanding high-quality human resources and using high-technology equipment. These characteristics and the industrys market imperfections may be the reasons for this lack of fit with the theory. The results suggest that shareholders should invest more capital in the business and that large airlines have performance problems and should be split up into divisions, each addressing specific markets. These findings are at odds with trends towards consolidation seen in the airline industry.